Hot Cleveland Office Market Registers Two More Sales
- Jul 28, 2015
Investors are starting to take note of the hot Cleveland office market. In recent weeks two office buildings changed hands for a total price of over $20 million.
According to Crain’s Cleveland, an affiliate of New York-based Shelbourne Global Solutions is now the new owner of One Corporate Exchange, an office building located at 25825 Science Park Drive, in Beachwood. The four-story property was sold by a company controlled by Dallas-based Lone Star Funds, for $11.25 million. It offers 89,000 square feet of space. At the moment, One Corporate Exchange has only about 8,000 square feet of vacant space.
The second office building to change hands was Corporate Place, a three-story structure also located in Beachwood, on the exact same street as One Corporate Exchange. The Plain Dealer reports that an affiliate of Group RMC purchased the property at 25800 Science Park Drive for $9.4 million. Just like One Corporate Exchange, Corporate Place was also owned by an affiliate of Lone Star Funds.
Alex Massa, a member of Group RMC, told for The Plain Dealer that the 85,000-square-foot Corporate Place is currently 80 percent leased. His company has hired a team from Colliers International’s Cleveland office to find new tenants for the property. Brian Hurtuk, managing director of Colliers’ Cleveland office, also told the newspaper that he expects to fill the office building by the end of the year.
In its Q2 2015 report, CBRE said that the Cleveland office market continues to experience a period of strength, with positive metrics in both the Downtown and Suburban markets. Investors are currently raiding the region, picking up both prime and underperforming assets. The latter are usually purchased for redevelopment.
The Cleveland area has already seen several important transactions this year. Duke Realty Corp. sold its last six office buildings in northeast Ohio at the start of spring, to Time Equities Inc. The transaction was followed by K&D Group’s acquisition of the 21-story Keith Building and by the $22.5 million sale of the Huntington Building to Florida-based Hudson Holdings LLC.